Background
The Group of Twenty (G20) comprises 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom, and United States) and two regional bodies, namely the European Union (EU) and African Union (AU). The G20 members represent around 85% of the global Gross Domestic Product, over 75% of the global trade, and about two-thirds of the world population.
The G20 is the premier forum for international economic cooperation and it plays an important role in shaping and strengthening global architecture and governance on all major international economic issues.
The G20 does not have a permanent secretariat or staff. Instead, the G20 Presidency rotates annually among the members and is selected from a different regional grouping of countries. The 19 member countries are therefore divided up into five groups comprising a maximum of four countries each. Most of the groups are formed on a regional basis, that is countries from the same region are usually put in the same group. Only Group 1 (Australia, Canada, Saudi Arabia and the United States) and Group 2 (India, Russia, South Africa and Türkiye) do not follow this pattern. Group 3 includes Argentina, Brazil, and Mexico; Group 4 includes France, Germany, Italy, and United Kingdom; and Group 5 includes China, Indonesia, Japan, and Republic of Korea. The EU and the AU are not members of any of these regional groups.
Each year another country from a different group assumes the G20 Presidency. The countries in a group are each equally entitled to take on the Presidency when it is their group’s turn. The G20 Presidency is responsible for bringing together the G20 agenda in consultation with other members and in response to developments in the global economy. To ensure continuity, the Presidency is supported by a “troika” made up of the current, immediate past and next host countries. During South Africa’s Presidency, the members of the G20 troika are Brazil, South Africa and the United States.
Inception of G20
The G20 was founded in 1999 after the Asian financial crisis of 1997 – 1998 as an informal forum for the Finance Ministers and Central Bank Governors of the most important industrialised and developing economies to discuss international economic and financial stability.
Elevation to Leaders’ level
The G20 was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007, and in 2009, when it became apparent that the necessary crisis coordination would only be possible at the highest political level. Since then, the G20 Leaders have met regularly, and the G20 has become the premier forum for international economic cooperation.
The G20 Summit is held annually, under the leadership of a rotating Presidency. The forum initially focused largely on broad macroeconomic issues, but it has since expanded its agenda to inter-alia include trade, climate change, sustainable development, health, agriculture, energy, environment, climate change, and anti-corruption.
The list of G20 Summits held so far, with their main focus areas, is placed at Annex-II.
Guest Countries and Invited International Organizations
In addition to the member countries, i.e. 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom, and the United States), the EU and AU, each G20 Presidency invites other guest countries and international organizations (IOs) to participate in the G20 meetings and Summit.
South Africa has invited Nigeria, Egypt, Norway, The Netherlands, Spain and Singapore as guest countries during its G20 Presidency, as well as the heads of the following Regional Economic Communities: the Southern Africa Development Community, the Common Market for Eastern and Southern Africa, the Economic Community of West African States, the Economic Community of Central African States and the East African Community. Countries to be invited at a Working Group level include Denmark, Portugal, Switzerland, Finland, the United Arab Emirates, Ireland and New Zealand.
For Guest IOs, South Africa has invited the United Nations (UN); Organisation for Economic Co-operation and Development; World Trade Organisation; World Health Organisation; Food and Agriculture Organisation; UN Educational, Scientific and Cultural Organisation; International Labor Organisation; International Monetary Fund; World Bank; New Development Bank; African Development Bank; UN Economic Commission for Africa; African Continental Free Trade Area; UN Trade and Development; South Centre; Financial Stability Board and at working group level theInternational Telecommunication Union; World Customs Organisation and the UN Development Programme.
G20 Structure
Sherpa Track
It is headed by Sherpa who is the representative of the Leader.
Focus areas: Socio-economic issues such as agriculture, anti-corruption, climate, digital economy, education, employment, energy, environment, health, tourism, trade and investment. The Working Groups under this track include:
- Agriculture Working Group
- Anti-corruption Working Group
III. Culture Working Group
- Development Working Group
- Digital Economy Working Group
- Disaster Risk Reduction Working Group
VII. Education Working Group
VIII. Employment Working Group
- Energy Transitions Working Group
- Environment and Climate Sustainability Working Group
- Health Working Group
XII. Tourism Working Group
XIII. Trade and Investment Working Group
Finance Track
It is headed by the Finance Ministers and Central Bank Governors, who generally meet four times a year, with two meetings being held on the side-lines of WB/IMF meetings.
Focus areas: Fiscal and monetary policy issues such as the global economy, infrastructure, financial regulation, financial inclusion, international financial architecture, and international taxation. The Working Groups and Workstreams under this track include:
- Framework Working Group
- International Financial Architecture Working Group
III. Infrastructure Working Group
- Sustainable Finance Working Group
- Global Partnership for Financial Inclusion
- Joint Finance and Health Task Force
VII. International taxation Issues
VIII. Financial Sector Issues
Engagement Groups
As part of the G20 members’ commitment to consult relevant stakeholder communities, dialogue is facilitated through the engagement groups, comprising nongovernment participants from each G20 member. These groups often draft recommendations to the G20 Leaders that contribute to the policy-making process. The engagement groups are as follows:
- Business20
- Civil20
III. Labour20
- Parliament20
- Science20
- SAI20
VII. Startup20
VIII. Think20
- Urban20
- Women20
- Youth20